Hi,
I have two out of state investment properties managed by property management. they take 10% plus other fees at renewal. I'm 45M employed
one is a town house with 4.5% ~100K left market value at ~450K
second is a house with 2.75% 15 years ~120K left market value at ~580K
over the years rent cover all the costs. never vacant.
But now the cost of HOA, insurance and taxes are increases.
option 1: leave it and it will pay itself off and then it will be good passive income ~4K
option 2: sell them and do an exchange and buy something locally
option 3: sell them and pay off my primary house and yes pay the tax on it profit
Thanks in advance
Question regarding out of state investment property
byu/LuckyScale6649 inrealestateinvesting
Posted by LuckyScale6649
2 Comments
Those are some solid rates you locked in, especially that 2.75%. If the rent still covers everything even with the increased costs, I’d probably just ride it out – that 4K passive income is gonna be sweet once they’re paid off
The 1031 exchange could work if you find better deals locally but man, good luck beating those interest rates in today’s market
I’m a run and gun type of guy but I would just sit on what you have.